14. Profit-sharing plan – Definition of normal retirement age, mandatory retirement age…

Statement of Requirement: Code § 411(a)(8); Reg. § 1.411(a)-7(b)(1); Rev. Proc. 2023-37, 2023-51 I.R.B. 1491, sec. 9.02(13)

Sample Plan Language:

Normal retirement age is the age selected in the adoption agreement. If the employer enforces a mandatory retirement age, the normal retirement age is the lesser of that mandatory age or the age specified in the adoption agreement.

Sample Adoption Agreement Language:

For each participant normal retirement age is:

( ) Age ____ (not to exceed 65)

( ) The later of:

(ii) age _____ (not to exceed 65) or

(ii) the _____ (not to exceed 5 ^th ) anniversary of the participation commencement date. If, for plan years beginning before January 1, 1988, normal retirement age was determined with reference to the anniversary of the participation commencement date (more than 5 but not to exceed 10 years), the anniversary date for participants who first commenced participation under the plan before the first plan year beginning on or after January 1, 1988, shall be the earlier of (A) the tenth anniversary of the date the participant commenced participation in the plan (or such anniversary as had been elected by the employer, if less than 10) or (B) the fifth anniversary of the first day of the first plan year beginning on or after January 1, 1988. The participation commencement date is the first day of the first plan year in which the participant commenced participation in the plan.